“Pivot to the East” in Russian Regional Policy: Expectations and Realities

Abstract The article assesses the impact of the policy of Russia’s “Pivot to the East” on the development of Siberia and the Far East. Regional policy measures designed to create preferential economic regimes and attract people and investments to the eastern regions are described. It is shown that preferential conditions were created for the Far East, Siberia was on the periphery of the “eastern regional policy.” The article analyzes the indicators of economic growth and structural changes in the eastern regions and the impact of sanctions on them. It is shown that the development of transport and logistics infrastructure in the eastern regions has become an important factor ensuring the reorientation of Russia’s foreign economic relations to friendly countries. The sources and structure of investment in fixed capital are considered. It is noted that the high share of investment in infrastructure and mining does not ensure high rates of GRP growth in the eastern regions even with high rates of investment growth. The regional policy measures taken have not led to fundamental changes in the social sphere of the eastern regions. Population outflow persists, Siberia and the Far East lag behind the national average in terms of real incomes and wages, and unemployment remains higher. The qualitative characteristics of growth have not improved: the share of mineral extraction in the GRP structure has increased, and the share of high-tech and knowledge-intensive industries has decreased. The implementation of the “Pivot to the East” policy ensured the attraction of significant amounts of investment to the eastern regions, primarily to the Far East, and became an important factor in Russia’s adaptation to sanctions, but the expected breakthrough in the development of the eastern regions did not occur. Structural and social problems persist in the eastern regions, the solution of which in modern conditions through massive attraction of external resources to the eastern regions is unlikely.